What is the black market?

A black market is considered a type of economic activity taking place outside the sanctioned channels of the government. The transactions of the black market usually occur “under the table” to allow participants to avoid price controls or taxes of the government. The black markers are also known to be the […]

HOW TAXATION WORKS FOR THE ECONOMY?

Taxation is a mechanism through which a state collects revenue for its expenditure from the people of the country. Taxation is not only applied to people but a state can also collect taxes in the process of trade as well. The state applies tariffs of the imports coming into the economy. […]

The advantages of trading through Forex trading.

Forex has been emerging as a very popular trading platform, especially for the people belonging to financial backgrounds. What motivates young graduates and experienced professionals to choose this as a career is the motivation given by the fact that you can be your own boss and make money through your phone […]

IMPLEMENTATION OF MONETARY POLICY:

Besides the importance of shaping monetary policy, implementation is also crucial. For developing countries especially, these monetary policies are important and it is also important to implement them during suitable times of economic activity. Open market operations are one way through which the monetary institutions buy and sell short term bonds […]

HOW A COUNTRY CAN MAKE DEMONETIZATION POLICY WORK?

Demonetization policy is implemented in order to bring changes to the existing currency system. Following the demonetization policy, a country can change the paper money to encourage a cash-less economy in order to boost the electronic money system. The basic reason behind the implementation of demonetization is to track black money, […]

WHAT ARE TRANSITIONAL ECONOMIES?

Transitional economies are also called emerging economies that are broadly defined as nations which are in the process of rapid growth and industrialization. Mostly these nations are transforming into an open market economy with emerging characteristics like the growth of the working population. The term transitional economies are used for the […]

WHY IS THERE A CENTRAL BANK?

The concept of central banks emerged with the establishment of the Bank of England in 1694. It is still believed that the concept of central banks did not exist until the 20th century. Basically, central banks were the solution to the problem of commercial banking systems at that time. The world recognized […]

ROLE OF CENTRAL BANK IN ECONOMY:

The economy of a country consists of many areas which collectively work to make the economy work. The role of central banks is impossible to ignore. The central bank is an important aspect of the economy that has a variety of roles to play. Central banks are called the backbone of […]